Our human living environment on this planet is being seriously threatened by global warming. The considerable evidence demonstrates that it is mainly caused by the emission of greenhouse gases (GHGs) such as carbon dioxide from the burning of fossil fuels. To mitigate global warming, it is necessary to reduce GHG emissions, for example through conservation, the introduction of cleaner technology, and the use of alternative energy sources. Emitters may, for example, set allowance quotas or baselines, with progressive reductions over time. Since some parties reduce emission more easily than others, it makes sense for the parties to be allowed to trade quotas among themselves. By allowing the trading of emissions quotas the process of reducing global emissions in economic terms is effective.
A challenging question in keeping sustainable economic growth is how to coordinate the emission reduction action with daily business operations. Sustainable Networks Group investigates how environmental concerns could be integrated into operational decision making throughout the supply chain. We aim at providing a multidisciplinary research study on the interface between operations research, environmental economics and finance. Areas of our Research include:
- To investigate the dynamics of emission markets and its effect on logistics decisions
- To characterize the emitters behavior in the presence of the emission trading systems and investigate the appropriate use of emission trading to optimize the emitters’ profitability and operations strategies
- To evaluate mitigation policies on emission reduction and renewable energy technology innovation for profit and energy effectiveness
- To explore how emission trading and other mitigation policies enable the supply chains to become greener.